Bitcoin Volatility Drops as Market Consolidates: What It Means for Investors
According to BlockBeats, $BTC
Bitcoin volatility has slightly increased to 1.62%, up from a recent low of 1.45%. Over the past two months, Bitcoin has remained within a tight trading range of $93,000 to $111,000, a notable shift from its historically wide price swings.
Analysts attribute this drop in volatility to several key factors, most notably the increased selling of call options by Bitcoin holders. This strategy suggests that many investors expect the price to remain stable in the near term.
Despite the lower volatility, Bitcoin’s perpetual contract funding rate is still positive, a sign that bullish sentiment remains strong among traders.
BlockBeats further highlights that high volatility in Bitcoin is usually driven by speculative activity and retail FOMO (fear of missing out). In contrast, the current period of low volatility could indicate a market cooldown or consolidation, where short-term speculators exit and long-term investors take hold.
Additionally, Bitcoin’s price movements are often tied to broader macroeconomic factors such as inflation data, interest rate policies, and geopolitical developments. As these external factors stabilize, Bitcoin tends to trade more calmly — which is exactly what we're seeing now.#OneBigBeautifulBill $ETH